System and method for making a synthetic cash advance using a purchase payment exchange

Abstract

System and method provide for making a synthetic cash advance to a credit cardholder via a purchase-payment exchange. A second person selects an item to be purchased by a cardholder for the second person, and in exchange for the cardholder's credit card purchase, the second person pays the cardholder an amount of money that is less than the amount charged to the cardholder's credit card. Using this invention, the second person receives the selected item (or has a payment made) at a discount, and the cardholder is able to transform a credit card purchase into a synthetic cash advance at the credit card's purchase interest rate. Two or more cardholders may bid in an online auction to complete the second person's financial transaction in exchange for the second person's money. A cardholder who submits a conforming bid, that is willing to accept the least amount of money, may be selected as the auction winner.

What is claimed is: 
     
       1. A method to transform a credit card purchase into synthetic cash advance, comprising:
 selecting a credit cardholder's bid by a purchase payment exchange system, 
 using the cardholder's credit card by the purchase payment exchange system to complete a second person's financial transaction; and 
 making an amount of money available to the cardholder in exchange for use of the cardholder's credit card to complete the second person's financial transaction, wherein the amount of money is a synthetic cash advance that is less than the amount charged to the cardholder's credit card. 
 
     
     
       2. The method of  claim 1 , wherein the money is made available to the cardholder via one of a group, the group comprising an electronic funds transfer, a credit to a designated account, a check, a money order, cash via an ATM, cash via a kiosk, and cash over the counter of a financial transaction. 
     
     
       3. The method of  claim 1 , wherein the cardholder's bid includes one of a group, the group comprising a purchase price, a discount from the purchase price, and a credit card to be used to complete the second person's financial transaction. 
     
     
       4. The method of  claim 3 , wherein the purchase price comprises one of a group, the group comprising a maximum dollar amount and a dollar amount range. 
     
     
       5. The method of  claim 3 , wherein the discount from the purchase price is the difference between the purchase price and the amount the cardholder is willing to be paid in exchange for completing the second person's financial transaction. 
     
     
       6. The method of  claim 1 , further comprising means to select the cardholder bid from a plurality of cardholder bids. 
     
     
       7. The method of  claim 6 , further comprising means to select the cardholder bid having the greatest cardholder discount. 
     
     
       8. The method of  claim 1 , further comprising means to direct the second person's financial institution to make the amount of money available to the credit cardholder. 
     
     
       9. The method of  claim 1 , further comprising means for an online payment solution provider to pay the cardholder with funds held in escrow. 
     
     
       10. The method of  claim 1 , further comprising a means for aggregating two or more credit cardholder bids to complete a second person's financial transaction when an individual credit cardholder's bid financial transaction price range is insufficient to complete a financial transaction for the second person. 
     
     
       11. The method of  claim 1 , wherein the money obtained by the credit cardholder is obtained at the credit cardholder's credit card purchase interest rate. 
     
     
       12. The method of  claim 1 , wherein the amount of money made available to the credit cardholder is not a rebate, price reduction, merchant incentive, or credit card issuer incentive. 
     
     
       13. A system to have a financial transaction completed at a discount, comprising:
 means to receive a second person's bid request to complete the second person's financial transaction; 
 means to select a credit cardholder's conforming bid; 
 means to use the credit cardholder's credit card to complete the second person's financial transaction; and 
 means to pay the credit cardholder an amount of money in exchange for using the credit cardholder's credit card to complete the second person's financial transaction, wherein the amount of money is less than the cost to complete the second person's financial transaction. 
 
     
     
       14. The system of  claim 13 , wherein the credit cardholder's conforming bid comprises an offer by the credit cardholder to complete a second person's financial transaction using the credit cardholder's credit card, and a discount from the cost to complete the financial transaction, wherein the discount is equal to or greater than the second person's minimum discount. 
     
     
       15. The system of  claim 13 , further comprising the step of selecting the conforming credit cardholder's bid via an auction, when there are two or more conforming cardholder bids. 
     
     
       16. A system to facilitate a purchase-payment exchange, comprising:
 means for making an amount of money available to a credit cardholder in exchange for using the cardholder's credit card to complete a second person's financial transaction, wherein the amount of money made available to the credit cardholder is less than the amount charged to the cardholder's credit card. 
 
     
     
       17. The system of  claim 16 , further comprising means for the second person to pre-approve the second person's financial institution to make a payment to the credit cardholder. 
     
     
       18. The system of  claim 16 , wherein a winning credit cardholder is chosen via an auction, wherein the auction criteria for the winner includes the credit cardholder bid having the greatest cardholder discount. 
     
     
       19. The system of  claim 16 , wherein the money obtained is obtained at the credit cardholder's credit card purchase interest rate. 
     
     
       20. The system of  claim 16 , wherein the amount of money made available to the credit cardholder is not a rebate, merchant incentive, or a price reduction.